HB-5526, As Passed House, December 13, 2018

 

 

 

 

 

 

 

 

 

 

 

 

SUBSTITUTE FOR

 

HOUSE BILL NO. 5526

 

 

 

 

 

 

 

 

 

 

 

     A bill to amend 1976 PA 451, entitled

 

"The revised school code,"

 

by amending sections 12a, 381, 392, 393, 502, 503, 507, 522, 528,

 

552, 561, and 1250 (MCL 380.12a, 380.381, 380.392, 380.393,

 

380.502, 380.503, 380.507, 380.522, 380.528, 380.552, 380.561, and

 

380.1250), section 12a as added by 2013 PA 96, sections 381, 392,

 

and 393 as added and sections 502, 507, 522, 528, 552, 561, and

 

1250 as amended by 2016 PA 192, and section 503 as amended by 2011

 

PA 277, and by adding section 1280g; and to repeal acts and parts

 

of acts.

 

THE PEOPLE OF THE STATE OF MICHIGAN ENACT:

 

     Sec. 12a. (1) As permitted under federal law, if a school

 

district is dissolved under section 12 or if the functions and

 

responsibilities of a school district for operating a public school

 

are transferred to another public entity, including, but not

 

limited to, a transfer to another public entity under section

 

1280c, the superintendent of public instruction shall grant each

 

receiving school district or other public entity assuming the

 

functions and responsibilities for the public school an allocation

 

of grants under 20 USC 6333, 6334, 6335, and 6337 and of other

 

federal funds that would otherwise be made available for grants to

 

or federal funding for the public school or make other adjustments

 

in the allocation of federal funds to implement the dissolution of

 

the school district or other transfer of functions and

 

responsibilities.

 

     (2) As used in this section, "receiving school district" means

 

that term as defined in section 12.

 

     Sec. 381. (1) A school district organized as a community

 

district shall be governed by this part, by the provisions of

 

article 2 not inconsistent with this part, and by articles 3 and 4.

 

     (2) A community district is a political subdivision and public

 

body corporate separate and distinct from this state and other

 

school districts in this state.

 

     (3) The name of a school district governed by this part shall

 

include the name of the city, village, or township with the

 

greatest population located within the geographic boundaries of the

 

community district, the word "school" or "schools", and the word

 

"community" or "district", or both.

 

     (4) Subject to section 12b, a school district governed by this

 

part shall be under the jurisdiction of and governed by the school

 

board of the community district provided for by section 384.

     (5) As used in this part:

 

     (a) "Authorizing body" means that term as defined in section

 

501, 521, or 551, as applicable.

 

     (b) "State school reform/redesign officer" means that officer

 

serving under section 1280c.

 

     (b) (c) "Transfer date" means that term as defined in section

 

12b.

 

     Sec. 392. The board of a community district shall not open a

 

new school if both of the following circumstances exist:

 

     (a) Until the accountability system under section 390 has been

 

in effect in the community district for at least 3 full school

 

years, the The proposed school would operate at the same location

 

as a public school that currently is on the list under section

 

1280c(1) or 1280g(3), as applicable, of the public schools in this

 

state that the state school reform/redesign office has determined

 

to be among the lowest achieving 5% of all public schools in this

 

state or has been on that list the list under section 1280c(1) or

 

1280g(3), as applicable, during the immediately preceding 3-year

 

period. Beginning after the accountability system under section 390

 

has been in effect in the community district for at least 3 full

 

school years, the proposed school would operate at the same

 

location as a public school that has been assigned a grade of "F"

 

under section 390 for 3 of the preceding 5 school years.

 

     (b) The proposed school would have substantially the same

 

leadership and substantially the same curriculum offerings as the

 

school that previously operated at that location.

 

     Sec. 393. (1) A community district shall have, support, and

House Bill No. 5526 as amended December 13, 2018

maintain an advisory council as provided in this section.

 

     (2) The advisory council shall consist of 6 members as

 

follows:

 

     (a) The superintendent of schools of the community district or

 

his or her designee.

 

     (b) The school board president of the community district or

 

his or her designee.

 

     (c) One member, appointed by the [state school reform/redesign

 

officer,department,] who at the time of his or her appointment is the

 parent of

 

at least 1 pupil who is currently enrolled, and who has been

 

enrolled for at least 1 full school year, in a public school

 

operated by the community district or operated by the qualifying

 

school district with the same boundaries as the community district.

 

If a member appointed under this subdivision ceases to have a child

 

enrolled in a public school operated by the community district,

 

that member shall be considered to have vacated the member's

 

office.

 

     (d) One member representing authorizing bodies that have

 

authorized at least 3 public school academies located within the

 

community district, appointed by the state school reform/redesign

 

officer department from among nominees submitted by a statewide

 

organization representing authorizing bodies.

 

     (e) One member who serves as a school administrator in, or on

 

the board of directors of, a public school academy that is located

 

within the community district and is authorized by the governing

 

board of a state public university, appointed by the state school

 

reform/redesign officer department from among nominees submitted by

a statewide organization representing public school academies.

 

     (f) One member, appointed by the state school reform/redesign

 

officer, department, who at the time of his or her appointment is

 

the parent of at least 1 pupil who is currently enrolled, and who

 

has been enrolled for at least 1 full school year, in a public

 

school academy located within the community district. If a member

 

appointed under this subdivision ceases to have a child enrolled in

 

a public school academy located within the community district, that

 

member shall be considered to have vacated the member's office.

 

     (3) The advisory council members appointed under subsection

 

(2)(c) to (f) shall serve for a term of 4 years. A vacancy in the

 

office shall be filled in the same manner as the original

 

appointment for the vacated seat.

 

     (4) In carrying out its functions, an advisory council shall

 

solicit input and consider recommendations from representatives of

 

authorizing bodies for public school academies operating within the

 

community district, community groups, and other interested parties

 

with relevant experience.

 

     (5) On an annual basis, an advisory council shall prepare and

 

submit to the school board of the community district a report on

 

the physical state of public school facilities located within the

 

community district; the utilization of public school facilities

 

located within the community district, considering efficiency of

 

that utilization and possible consolidation or elimination of

 

facilities; the siting of existing and future public schools within

 

the community district, considering population, population density,

 

and the efficient and equitable distribution of facilities; and

transportation of pupils to and from public schools located within

 

the community district. The school board of the community district

 

shall provide a copy of this report to the state school

 

reform/redesign officer, department, to the authorizing body of

 

each public school academy located within the community district,

 

and to the standing committees of the senate and house of

 

representatives with responsibility for education legislation.

 

     (6) In carrying out its functions and responsibilities, the

 

school board of a community district shall consider the reports

 

received from the advisory council under subsection (5).

 

     Sec. 502. (1) A public school academy shall be organized and

 

administered under the direction of a board of directors in

 

accordance with this part and with bylaws adopted by the board of

 

directors. A public school academy corporation shall be organized

 

under the nonprofit corporation act, 1982 PA 162, MCL 450.2101 to

 

450.3192, except that a public school academy corporation is not

 

required to comply with sections 170 to 177 of 1931 PA 327, MCL

 

450.170 to 450.177. To the extent disqualified under the state or

 

federal constitution, a public school academy shall not be

 

organized by a church or other religious organization and shall not

 

have any organizational or contractual affiliation with or

 

constitute a church or other religious organization.

 

     (2) Subject to subsection (9), any of the following may act as

 

an authorizing body to issue a contract to organize and operate 1

 

or more public school academies under this part:

 

     (a) The board of a school district. However, the board of a

 

school district shall not issue a contract for a public school

academy to operate outside the school district's boundaries, and a

 

public school academy authorized by the board of a school district

 

shall not operate outside that school district's boundaries.

 

     (b) An intermediate school board. However, the board of an

 

intermediate school district shall not issue a contract for a

 

public school academy to operate outside the intermediate school

 

district's boundaries, and a public school academy authorized by

 

the board of an intermediate school district shall not operate

 

outside that intermediate school district's boundaries.

 

     (c) The board of a community college. However, except as

 

otherwise provided in this subdivision, the board of a community

 

college shall not issue a contract for a public school academy to

 

operate in a school district organized as a school district of the

 

first class, a public school academy authorized by the board of a

 

community college shall not operate in a school district organized

 

as a school district of the first class, the board of a community

 

college shall not issue a contract for a public school academy to

 

operate outside the boundaries of the community college district,

 

and a public school academy authorized by the board of a community

 

college shall not operate outside the boundaries of the community

 

college district. The board of a community college also may issue a

 

contract for not more than 1 public school academy to operate on

 

the grounds of an active or closed federal military installation

 

located outside the boundaries of the community college district,

 

or may operate a public school academy itself on the grounds of

 

such a federal military installation, if the federal military

 

installation is not located within the boundaries of any community

college district and the community college has previously offered

 

courses on the grounds of the federal military installation for at

 

least 10 years.

 

     (d) The governing board of a state public university. However,

 

the combined total number of contracts for public school academies

 

issued by all state public universities shall not exceed 300

 

through December 31, 2012 and shall not exceed 500 through December

 

31, 2014. After December 31, 2014, there is no limit on the

 

combined total number of contracts for public school academies that

 

may be issued by all state public universities.

 

     (e) Two or more of the public agencies described in

 

subdivisions (a) to (d) exercising power, privilege, or authority

 

jointly pursuant to an interlocal agreement under the urban

 

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512.

 

     (3) To obtain a contract to organize and operate 1 or more

 

public school academies, 1 or more persons or an entity may apply

 

to an authorizing body described in subsection (2). The application

 

shall include at least all of the following:

 

     (a) Identification of the applicant for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 503(5), a list of the proposed members of the board

 

of directors of the public school academy and a description of the

 

qualifications and method for appointment or election of members of

 

the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

     (i) The name of the proposed public school academy.

 

     (ii) The purposes for the public school academy corporation.

 

This language shall provide that the public school academy is

 

incorporated pursuant to this part and that the public school

 

academy corporation is a governmental entity.

 

     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the public school

 

academy.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, including at least all of the following:

 

     (i) The governance structure of the public school academy.

 

     (ii) A copy of the educational goals of the public school

 

academy and the curricula to be offered and methods of pupil

 

assessment to be used by the public school academy. The educational

 

goals shall include demonstrated improved pupil academic

 

achievement for all groups of pupils. To the extent applicable, the

 

progress of the pupils in the public school academy shall be

 

assessed using both the mathematics and reading portions of the

 

Michigan student test of educational progress (M-STEP) or the

 

Michigan merit examination under section 1279g, as applicable.

 

     (iii) The admission policy and criteria to be maintained by

 

the public school academy. The admission policy and criteria shall

 

comply with section 504. This part of the application also shall

include a description of how the applicant will provide to the

 

general public adequate notice that a public school academy is

 

being created and adequate information on the admission policy,

 

criteria, and process.

 

     (iv) The school calendar and school day schedule.

 

     (v) The age or grade range of pupils to be enrolled.

 

     (f) Descriptions of staff responsibilities and of the public

 

school academy's governance structure.

 

     (g) For an application to the board of a school district, an

 

intermediate school board, or board of a community college,

 

identification of the local and intermediate school districts in

 

which the public school academy will be located.

 

     (h) An agreement that the public school academy will comply

 

with the provisions of this part and, subject to the provisions of

 

this part, with all other state law applicable to public bodies and

 

with federal law applicable to public bodies or school districts.

 

     (i) A description of and address for the proposed physical

 

plant in which the public school academy will be located. An

 

applicant may request the authorizing body to issue a contract

 

allowing the public school academy board of directors to operate

 

the same configuration of age or grade levels at more than 1 site.

 

     (4) An authorizing body shall oversee, or shall contract with

 

an intermediate school district, community college, or state public

 

university to oversee, each public school academy operating under a

 

contract issued by the authorizing body. The authorizing body is

 

responsible for overseeing compliance by the board of directors

 

with the contract and all applicable law. This subsection does not

relieve any other government entity of its enforcement or

 

supervisory responsibility.

 

     (5) If the superintendent of public instruction finds that an

 

authorizing body is not engaging in appropriate continuing

 

oversight of 1 or more public school academies operating under a

 

contract issued by the authorizing body, the superintendent of

 

public instruction may suspend the power of the authorizing body to

 

issue new contracts to organize and operate public school

 

academies. A contract issued by the authorizing body during the

 

suspension is void. A contract issued by the authorizing body

 

before the suspension is not affected by the suspension.

 

     (6) An authorizing body shall not charge a fee, or require

 

reimbursement of expenses, for considering an application for a

 

contract, for issuing a contract, or for providing oversight of a

 

contract for a public school academy in an amount that exceeds a

 

combined total of 3% of the total state school aid received by the

 

public school academy in the school year in which the fees or

 

expenses are charged. An authorizing body may provide other

 

services for a public school academy and charge a fee for those

 

services, but shall not require such an arrangement as a condition

 

to issuing the contract authorizing the public school academy.

 

     (7) A public school academy shall be presumed to be legally

 

organized if it has exercised the franchises and privileges of a

 

public school academy for at least 2 years.

 

     (8) An authorizing body may enter into an intergovernmental

 

agreement with another authorizing body to issue public school

 

academy contracts. At a minimum, the agreement shall further the

purposes set forth in section 501, describe which authorizing body

 

shall issue the contract, and set forth which authorizing body will

 

be responsible for monitoring compliance by the board of directors

 

of the public school academy with the contract and all applicable

 

law.

 

     (9) Both of the following apply to the issuance of a contract

 

for a public school academy to be located within a community

 

district:

 

     (a) An authorizing body shall not issue a contract to organize

 

and operate a new public school academy to be located in a

 

community district unless, before issuing the contract, the

 

governing board of the authorizing body has certified to the state

 

school reform/redesign officer department that the authorizing body

 

has been accredited as an authorizing body by a nationally

 

recognized accreditation body. For an authorizing body described in

 

subsection (2)(e), the authorizing body shall not issue a contract

 

to organize and operate a new public school academy to be located

 

in a community district unless, before issuing the contract, the

 

governing board of each of the public agencies that is party to the

 

interlocal agreement has certified to the state school

 

reform/redesign officer department that the public agency has been

 

accredited as an authorizing body by a nationally recognized

 

accreditation body.

 

     (b) An authorizing body shall not issue a contract for a new

 

public school academy to be located in a community district if both

 

of the following circumstances exist:

 

     (i) Either of the following:

     (A) Until the accountability system under section 390 has been

 

in effect in the community district for at least 3 full school

 

years, the The proposed public school academy would operate at the

 

same location as a public school that currently is on the list

 

under section 1280c(1) or 1280g(3), as applicable, of the public

 

schools in this state that the state school reform/redesign office

 

has determined to be among the lowest achieving 5% of all public

 

schools in this state or has been on that list the list under

 

section 1280c(1) or 1280g(3), as applicable, during the immediately

 

preceding 3-year period. Beginning after the accountability system

 

under section 390 has been in effect in the community district for

 

at least 3 full school years, the proposed public school academy

 

would operate at the same location as a public school that has been

 

assigned a grade of "F" under section 390 for 3 of the preceding 5

 

school years.

 

     (B) The proposed public school academy would operate at the

 

same location as a public school academy, urban high school

 

academy, school of excellence, or strict discipline academy that

 

has had its contract revoked or terminated by an authorizing body

 

under the applicable part or section.

 

     (ii) The proposed public school academy would have

 

substantially the same board of directors, substantially the same

 

leadership, and substantially the same curriculum offerings as the

 

public school that previously operated at that location.

 

     (10) A public school academy that is located within a

 

community district is subject to section 390.

 

     Sec. 503. (1) An authorizing body is not required to issue a

contract to any person or entity. Subject to subsection (2), public

 

school academy contracts shall be issued on a competitive basis. In

 

deciding whether to issue a contract for a proposed public school

 

academy, an authorizing body shall consider all of the following:

 

     (a) The resources available for the proposed public school

 

academy.

 

     (b) The population to be served by the proposed public school

 

academy.

 

     (c) The educational goals to be achieved by the proposed

 

public school academy.

 

     (d) The applicant's track record, if any, in organizing public

 

school academies or other public schools.

 

     (e) The graduation rate of a school district in which the

 

proposed public school academy is proposed to be located.

 

     (f) The population of a county in which the proposed public

 

school academy is proposed to be located.

 

     (g) The number of schools in the proximity of a proposed

 

location of the proposed public school academy that are on the list

 

under section 1280c(1) or 1280g(3), as applicable, of the public

 

schools in this state that the department has determined to be

 

among the lowest achieving 5% of all public schools in this state.

 

     (h) The number of pupils on waiting lists of public school

 

academies in the proximity of a proposed location of the proposed

 

public school academy.

 

     (2) An authorizing body may give priority to a proposed public

 

school academy that is intended to replace a public school academy

 

that has been closed pursuant to section 507(5), that will operate

all of the same grade levels as the public school academy that has

 

been closed, and that will work toward operating all of grades 9 to

 

12 within 6 years after it begins operations unless a matriculation

 

agreement has been entered into with another public school that

 

provides grades 9 to 12.

 

     (3) If a person or entity applies to the board of a school

 

district for a contract to organize and operate 1 or more public

 

school academies within the boundaries of the school district and

 

the board does not issue the contract, the person or entity may

 

petition the board to place the question of issuing the contract on

 

the ballot to be decided by the school electors of the school

 

district. The petition shall contain all of the information

 

required to be in the contract application under section 502 and

 

shall be signed by a number of school electors of the school

 

district equal to at least 5% of the total number of school

 

electors of that school district. The petition shall be filed with

 

the school district filing official. If the board receives a

 

petition meeting the requirements of this subsection, the board

 

shall have the question of issuing the contract placed on the

 

ballot at its next regular school election held at least 60 days

 

after receiving the petition. If a majority of the school electors

 

of the school district voting on the question vote to issue the

 

contract, the board shall issue the contract.

 

     (4) Within 10 days after issuing a contract for a public

 

school academy, the authorizing body shall submit to the

 

superintendent of public instruction a copy of the contract.

 

     (5) An authorizing body shall adopt a resolution establishing

the method of selection, length of term, and number of members of

 

the board of directors of each public school academy subject to its

 

jurisdiction. The resolution shall be written or amended as

 

necessary to include a requirement that each member of the board of

 

directors must be a citizen of the United States.

 

     (6) A contract issued to organize and administer a public

 

school academy shall contain at least all of the following:

 

     (a) The educational goals the public school academy is to

 

achieve and the methods by which it will be held accountable. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the pupil performance of a public school academy shall

 

be assessed using at least a the Michigan education assessment

 

program (MEAP) test student test of educational progress (M-STEP)

 

or the Michigan merit examination under section 1279g, as

 

applicable.

 

     (b) A description of the method to be used to monitor the

 

public school academy's compliance with applicable law and its

 

performance in meeting its targeted educational objectives.

 

     (c) A description of the process for amending the contract

 

during the term of the contract.

 

     (d) All of the matters set forth in the application for the

 

contract.

 

     (e) Procedures for revoking the contract and grounds for

 

revoking the contract, including at least the grounds listed in

 

section 507.

 

     (f) A description of and address for the proposed physical

plant in which the public school academy will be located. An

 

authorizing body may include a provision in the contract allowing

 

the board of directors of the public school academy to operate the

 

same configuration of age or grade levels at more than 1 site if

 

each configuration of age or grade levels and each site identified

 

in the contract are under the direction and control of the board of

 

directors.

 

     (g) Requirements and procedures for financial audits. The

 

financial audits shall be conducted at least annually by a

 

certified public accountant in accordance with generally accepted

 

governmental auditing principles.

 

     (h) The term of the contract and a description of the process

 

and standards for renewal of the contract at the end of the term.

 

The standards for renewal shall include increases in academic

 

achievement for all groups of pupils as measured by assessments and

 

other objective criteria as the most important factor in the

 

decision of whether or not to renew the contract.

 

     (i) A certification, signed by an authorized member of the

 

board of directors of the public school academy, that the public

 

school academy will comply with the contract and all applicable

 

law.

 

     (j) A requirement that the board of directors of the public

 

school academy shall ensure compliance with the requirements of

 

1968 PA 317, MCL 15.321 to 15.330.

 

     (k) A requirement that the board of directors of the public

 

school academy shall prohibit specifically identified family

 

relationships between members of the board of directors,

individuals who have an ownership interest in or who are officers

 

or employees of an educational management organization involved in

 

the operation of the public school academy, and employees of the

 

public school academy. The contract shall identify the specific

 

prohibited relationships consistent with applicable law.

 

     (l) A requirement that the board of directors of the public

 

school academy shall make information concerning its operation and

 

management available to the public and to the authorizing body in

 

the same manner as is required by state law for school districts.

 

     (m) A requirement that the board of directors of the public

 

school academy shall collect, maintain, and make available to the

 

public and the authorizing body, in accordance with applicable law

 

and the contract, at least all of the following information

 

concerning the operation and management of the public school

 

academy:

 

     (i) A copy of the contract issued by the authorizing body for

 

the public school academy.

 

     (ii) A list of currently serving members of the board of

 

directors of the public school academy, including name, address,

 

and term of office; copies of policies approved by the board of

 

directors; board meeting agendas and minutes; a copy of the budget

 

approved by the board of directors and of any amendments to the

 

budget; and copies of bills paid for amounts of $10,000.00 or more

 

as they were submitted to the board of directors.

 

     (iii) Quarterly financial reports submitted to the authorizing

 

body.

 

     (iv) A current list of teachers and school administrators

working at the public school academy that includes their individual

 

salaries as submitted to the registry of educational personnel;

 

copies of the teaching or school administrator's certificates or

 

permits of current teaching and administrative staff; and evidence

 

of compliance with the criminal background and records checks and

 

unprofessional conduct check required under sections 1230, 1230a,

 

and 1230b for all teachers and administrators working at the public

 

school academy.

 

     (v) Curriculum documents and materials given to the

 

authorizing body.

 

     (vi) Proof of insurance as required by the contract.

 

     (vii) Copies of facility leases or deeds, or both, and of any

 

equipment leases.

 

     (viii) Copies of any management contracts or services

 

contracts approved by the board of directors.

 

     (ix) All health and safety reports and certificates, including

 

those relating to fire safety, environmental matters, asbestos

 

inspection, boiler inspection, and food service.

 

     (x) Any management letters issued as part of the annual

 

financial audit under subdivision (g).

 

     (xi) Any other information specifically required under this

 

act.

 

     (n) A requirement that the authorizing body must review and

 

may disapprove any agreement between the board of directors of the

 

public school academy and an educational management organization

 

before the agreement is final and valid. An authorizing body may

 

disapprove an agreement described in this subdivision only if the

agreement is contrary to the contract or applicable law.

 

     (o) A requirement that the board of directors of the public

 

school academy shall demonstrate all of the following to the

 

satisfaction of the authorizing body with regard to its pupil

 

admission process:

 

     (i) That the public school academy has made a reasonable

 

effort to advertise its enrollment openings.

 

     (ii) That the open enrollment period for the public school

 

academy is for a duration of at least 2 weeks and that the

 

enrollment times include some evening and weekend times.

 

     (p) A requirement that the board of directors of the public

 

school academy shall prohibit any individual from being employed by

 

the public school academy in more than 1 full-time position and

 

simultaneously being compensated at a full-time rate for each of

 

those positions.

 

     (7) A public school academy shall comply with all applicable

 

law, including all of the following:

 

     (a) The open meetings act, 1976 PA 267, MCL 15.261 to 15.275.

 

     (b) The freedom of information act, 1976 PA 442, MCL 15.231 to

 

15.246.

 

     (c) 1947 PA 336, MCL 423.201 to 423.217.

 

     (d) 1965 PA 166, MCL 408.551 to 408.558.

 

     (d) (e) Sections 1134, 1135, 1146, 1153, 1263(3), 1267, and

 

1274.

 

     (e) (f) Laws concerning participation in state assessments,

 

data collection systems, state level student growth models, state

 

accountability and accreditation systems, and other public

comparative data collection required for public schools.

 

     (8) A public school academy and its incorporators, board

 

members, officers, employees, and volunteers have governmental

 

immunity as provided in section 7 of 1964 PA 170, MCL 691.1407. An

 

authorizing body and its board members, officers, and employees are

 

immune from civil liability, both personally and professionally,

 

for an act or omission in authorizing a public school academy if

 

the authorizing body or the person acted or reasonably believed he

 

or she acted within the authorizing body's or the person's scope of

 

authority.

 

     (9) A public school academy is exempt from all taxation on its

 

earnings and property. Instruments of conveyance to or from a

 

public school academy are exempt from all taxation including taxes

 

imposed by 1966 PA 134, MCL 207.501 to 207.513. Unless the property

 

is already fully exempt from real and personal property taxes under

 

the general property tax act, 1893 PA 206, MCL 211.1 to 211.155,

 

property occupied by a public school academy and used exclusively

 

for educational purposes is exempt from real and personal property

 

taxes levied for school operating purposes under section 1211, to

 

the extent exempted under that section, and from real and personal

 

property taxes levied under the state education tax act, 1993 PA

 

331, MCL 211.901 to 211.906. A public school academy may not levy

 

ad valorem property taxes or another tax for any purpose. However,

 

operation of 1 or more public school academies by a school district

 

or intermediate school district does not affect the ability of the

 

school district or intermediate school district to levy ad valorem

 

property taxes or another tax.

     (10) A public school academy may acquire by purchase, gift,

 

devise, lease, sublease, installment purchase agreement, land

 

contract, option, or by any other means, hold and own in its own

 

name buildings and other property for school purposes, and

 

interests therein, and other real and personal property, including,

 

but not limited to, interests in property subject to mortgages,

 

security interests, or other liens, necessary or convenient to

 

fulfill its purposes. For the purposes of condemnation, a public

 

school academy may proceed under the uniform condemnation

 

procedures act, 1980 PA 87, MCL 213.51 to 213.75, excluding

 

sections 6 to 9 of that act, MCL 213.56 to 213.59, or other

 

applicable statutes, but only with the express, written permission

 

of the authorizing body in each instance of condemnation and only

 

after just compensation has been determined and paid.

 

     (11) A member of the board of directors of a public school

 

academy is a public officer and shall, before entering upon the

 

duties of the office, take the constitutional oath of office for

 

public officers under section 1 of article XI of the state

 

constitution of 1963.

 

     Sec. 507. (1) An authorizing body that issues a contract for a

 

public school academy under this part shall do all of the

 

following:

 

     (a) Ensure that the contract and the application for the

 

contract comply with the requirements of this part.

 

     (b) Within 10 days after issuing the contract, submit to the

 

department a copy of the contract.

 

     (c) Establish the method of selection, length of term, and

number of members of the board of directors of each public school

 

academy that it authorizes. The authorizing body shall ensure that

 

the board of directors includes representation from the local

 

community.

 

     (d) Oversee each public school academy operating under a

 

contract issued by the authorizing body. The oversight shall be

 

sufficient to ensure that the board of directors is in compliance

 

with the terms of the contract and with applicable law.

 

     (e) Develop and implement a process for holding a public

 

school academy accountable for meeting applicable academic

 

performance standards set forth in the contract and for

 

implementing corrective action for a public school academy that

 

does not meet those standards.

 

     (f) Take necessary measures to ensure that the board of

 

directors of a public school academy operates independently of any

 

educational management company involved in the operations of the

 

public school academy.

 

     (g) Oversee and ensure that the pupil admission process used

 

by the public school academy is operated in a fair and open manner

 

and is in compliance with the contract and this part.

 

     (h) Ensure that the board of directors of the public school

 

academy maintains and releases information as necessary to comply

 

with applicable law.

 

     (2) An authorizing body may enter into an agreement with 1 or

 

more other authorizing bodies to carry out any function of an

 

authorizing body under this act.

 

     (3) The authorizing body for a public school academy is the

fiscal agent for the public school academy. A state school aid

 

payment for a public school academy shall be paid to the

 

authorizing body that is the fiscal agent for that public school

 

academy, and the authorizing body shall then forward the payment to

 

the public school academy. Within 30 days after a contract is

 

submitted to the department by an authorizing body under subsection

 

(1), the department shall issue a district code to the public

 

school academy for which the contract was issued. If the department

 

does not issue a district code within 30 days after a contract is

 

filed, the state treasurer shall assign a temporary district code

 

in order for the public school academy to receive funding under the

 

state school aid act of 1979.

 

     (4) A contract issued under this part may be revoked by the

 

authorizing body if the authorizing body determines that 1 or more

 

of the following have occurred:

 

     (a) Failure of the public school academy to demonstrate

 

improved pupil academic achievement for all groups of pupils or

 

meet the educational goals set forth in the contract.

 

     (b) Failure of the public school academy to comply with all

 

applicable law.

 

     (c) Failure of the public school academy to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

     (d) The existence of 1 or more other grounds for revocation as

 

specified in the contract.

 

     (5) Except for a public school academy that is an alternative

 

school serving a special student population, if the state school

reform/redesign officer department determines that a public school

 

academy site that has been operating for at least 4 years is among

 

the lowest achieving 5% of all public schools in this state for the

 

immediately preceding 3 school years, as determined under section

 

1280c or 1280g, as applicable, not to include any individualized

 

education plan subgroup, the state school reform/redesign officer

 

department shall notify the public school academy's authorizing

 

body. Also, except for a public school academy that is an

 

alternative school serving a special student population, after the

 

accountability system under section 390 has been in effect in the

 

community district for at least 3 full school years, if the state

 

school reform/redesign officer determines that a public school

 

academy site located in a community district has been assigned a

 

grade of "F" under section 390 for the immediately preceding 3

 

school years, and is not currently undergoing reconstitution under

 

this section, the state school reform/redesign officer shall notify

 

the public school academy's authorizing body. Subject to subsection

 

(6), if an authorizing body receives notice from the state school

 

reform/redesign officer department under this subsection, the

 

authorizing body shall notify the public school academy and amend

 

the public school academy's contract to eliminate the public school

 

academy's authority to operate the existing age and grade levels at

 

the site and the public school academy shall cease operating the

 

existing age and grade levels at the site, effective at the end of

 

the current school year. Subject to subsection (6), if the public

 

school academy operates at only 1 site, and the authorizing body

 

receives notice from the state school reform/redesign officer

House Bill No. 5526 as amended December 13, 2018

department under this subsection, the authorizing body shall notify

 

the public school academy and revoke the public school academy's

 

contract, effective at the end of the current school year.

 

     (6) For a public school academy or site that is subject to a

 

notice [to    ] its authorizing body under this subsection (5), the

 

state school reform/redesign officer [department           ] shall

 

consider other public school options available to pupils in the

 

grade levels offered by the public school academy or site who

 

reside in the geographic area served by the public school academy

 

or site. If the state school reform/redesign officer [department           

 

    ] determines that closure of the public school academy or site

 

would result in an unreasonable hardship to these pupils because

 

there are insufficient other public school options reasonably

 

available for these pupils, the state school reform/redesign

 

officer [department    ] may rescind the notice. If the state

 

school reform/redesign officer [department] rescinds a notice

 

subjecting a public school academy or site to closure, the state

 

school reform/redesign officer [department] shall do so before

 

the end of the school year. If the state school reform/redesign

 

officer [department] rescinds a notice subjecting a public

 

school academy or site to closure, the state school reform/redesign

 

officer [department] shall require the public school academy or

 

site to implement a school improvement plan that includes measures

 

to increase pupil growth and improve pupil proficiency, with growth

 

and proficiency measured by performance on state assessments.

 

     (7) Except as otherwise provided in section 502 or 503, the

 

decision of an authorizing body to issue, not issue, or

reconstitute a contract under this part, or to terminate or revoke

 

a contract under this section, is solely within the discretion of

 

the authorizing body, is final, and is not subject to review by a

 

court or any state agency. An authorizing body that issues, does

 

not issue, or reconstitutes a contract under this part, or that

 

terminates or revokes a contract under this section, is not liable

 

for that action to the public school academy, the public school

 

academy corporation, a pupil of the public school academy, the

 

parent or guardian of a pupil of the public school academy, or any

 

other person.

 

     (8) Except as otherwise provided in this section, before an

 

authorizing body revokes a contract, the authorizing body may

 

consider and take corrective measures to avoid revocation. An

 

authorizing body may reconstitute the public school academy in a

 

final attempt to improve student educational performance or to

 

avoid interruption of the educational process. An authorizing body

 

shall include a reconstituting provision in the contract that

 

identifies these corrective measures, including, but not limited

 

to, canceling a contract with an educational management

 

organization, if any, withdrawing approval of a contract under

 

section 506, or appointing a new board of directors or a trustee to

 

take over operation of the public school academy.

 

     (9) If an authorizing body revokes a contract, the authorizing

 

body shall work with a school district or another public school, or

 

with a combination of these entities, to ensure a smooth transition

 

for the affected pupils. If the revocation occurs during the school

 

year, the authorizing body, as the fiscal agent for the public

school academy under this part, shall return any school aid funds

 

held by the authorizing body that are attributable to the affected

 

pupils to the state treasurer for deposit into the state school aid

 

fund. The state treasurer shall distribute funds to the public

 

school in which the pupils enroll after the revocation pursuant to

 

a methodology established by the department and the center for

 

educational performance and information.

 

     (10) Not more than 10 days after a public school academy's

 

contract terminates or is revoked, the authorizing body shall

 

notify the superintendent of public instruction in writing of the

 

name of the public school academy whose contract has terminated or

 

been revoked and the date of contract termination or revocation.

 

     Sec. 522. (1) An urban high school academy shall be organized

 

and administered under the direction of a board of directors in

 

accordance with this part and with bylaws adopted by the board of

 

directors. An urban high school academy corporation shall be

 

organized under the nonprofit corporation act, 1982 PA 162, MCL

 

450.2101 to 450.3192, except that an urban high school academy

 

corporation is not required to comply with sections 170 to 177 of

 

1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified

 

under the state or federal constitution, an urban high school

 

academy shall not be organized by a church or other religious

 

organization and shall not have any organizational or contractual

 

affiliation with or constitute a church or other religious

 

organization.

 

     (2) Subject to subsection (9), the governing board of a state

 

public university may act as an authorizing body to issue a

contract for the organization and operation of an urban high school

 

academy under this part.

 

     (3) A contract issued under this part shall be issued for an

 

initial term of 10 years. If the urban high school academy meets

 

the educational goals set forth in the contract and operates in

 

substantial compliance with this part, the authorizing body shall

 

automatically renew the contract for a subsequent 10-year term.

 

     (4) To obtain a contract to organize and operate 1 or more

 

urban high school academies, an entity may apply to an authorizing

 

body described in subsection (2). The contract shall be issued to

 

an urban high school academy corporation designated by the entity

 

applying for the contract. The application shall include at least

 

all of the following:

 

     (a) Name of the entity applying for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 528, a list of the proposed members of the board of

 

directors of the urban high school academy and a description of the

 

qualifications and method for appointment or election of members of

 

the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

 

     (i) The name of the proposed urban high school academy to

 

which the contract will be issued.

 

     (ii) The purposes for the urban high school academy

 

corporation. This language shall provide that the urban high school

 

academy is incorporated pursuant to this part and that the urban

 

high school academy corporation is a governmental entity and

political subdivision of this state.

 

     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the urban high school

 

academy.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, including at least all of the following:

 

     (i) The governance structure of the urban high school academy.

 

     (ii) A copy of the educational goals of the urban high school

 

academy and the curricula to be offered and methods of pupil

 

assessment to be used by the urban high school academy. The

 

educational goals shall include demonstrated improved pupil

 

academic achievement for all groups of pupils. To the extent

 

applicable, the progress of the pupils in the urban high school

 

academy shall be assessed using both the mathematics and reading

 

portions of the Michigan student test of educational progress (M-

 

STEP) or the Michigan merit examination under section 1279g, as

 

applicable.

 

     (iii) The admission policy and criteria to be maintained by

 

the urban high school academy. The admission policy and criteria

 

shall comply with section 524. This part of the application also

 

shall include a description of how the applicant will provide to

 

the general public adequate notice that an urban high school

 

academy is being created and adequate information on the admission

policy, criteria, and process.

 

     (iv) The school calendar and school day schedule.

 

     (v) The age or grade range of pupils to be enrolled.

 

     (f) Descriptions of staff responsibilities and of the urban

 

high school academy's governance structure.

 

     (g) A description of and address for the proposed building or

 

buildings in which the urban high school academy will be located,

 

and a financial commitment by the entity applying for the contract

 

to construct or renovate the building or buildings that will be

 

occupied by the urban high school academy that is issued the

 

contract.

 

     (5) If a particular state public university issues a contract

 

that allows an urban high school academy to operate the same

 

configuration of grades at more than 1 site, as provided in section

 

524(1), each of those sites shall be under the direction of the

 

board of directors that is a party to the contract.

 

     (6) If the superintendent of public instruction finds that an

 

authorizing body is not engaging in appropriate continuing

 

oversight of 1 or more urban high school academies operating under

 

a contract issued by the authorizing body, the superintendent of

 

public instruction may suspend the power of the authorizing body to

 

issue new contracts to organize and operate urban high school

 

academies. A contract issued by the authorizing body during the

 

suspension is void. A contract issued by the authorizing body

 

before the suspension is not affected by the suspension.

 

     (7) An authorizing body shall not charge a fee, or require

 

reimbursement of expenses, for considering an application for a

contract, for issuing a contract, or for providing oversight of a

 

contract for an urban high school academy in an amount that exceeds

 

a combined total of 3% of the total state school aid received by

 

the urban high school academy in the school year in which the fees

 

or expenses are charged. All of the following apply to this fee:

 

     (a) An authorizing body may use this fee only for the

 

following purposes:

 

     (i) Considering applications and issuing or administering

 

contracts.

 

     (ii) Compliance monitoring and oversight of urban high school

 

academies.

 

     (iii) Training for urban high school academy applicants,

 

administrators, and boards of directors.

 

     (iv) Technical assistance to urban high school academies.

 

     (v) Academic support to urban high school academies or to

 

pupils or graduates of urban high school academies.

 

     (vi) Evaluation of urban high school academy performance.

 

     (vii) Training of teachers, including supervision of teacher

 

interns.

 

     (viii) Other purposes that assist the urban high school

 

academies or traditional public schools in achieving improved

 

academic performance.

 

     (b) An authorizing body may provide other services for an

 

urban high school academy and charge a fee for those services, but

 

shall not require such an arrangement as a condition to issuing the

 

contract authorizing the urban high school academy.

 

     (8) An urban high school academy shall be presumed to be

legally organized if it has exercised the franchises and privileges

 

of an urban high school academy for at least 2 years.

 

     (9) Both of the following apply to the issuance of a contract

 

for an urban high school academy to be located within a community

 

district:

 

     (a) An authorizing body shall not issue a contract to organize

 

and operate a new urban high school academy to be located in a

 

community district unless, before issuing the contract, the

 

governing board of the authorizing body has certified to the state

 

school reform/redesign officer department that the authorizing body

 

has been accredited as an authorizing body by a nationally

 

recognized accreditation body.

 

     (b) An authorizing body shall not issue a contract for a new

 

urban high school academy to be located in a community district if

 

both of the following circumstances exist:

 

     (i) Either of the following:

 

     (A) Until the accountability system under section 390 has been

 

in effect in the community district for at least 3 full school

 

years, the The proposed urban high school academy would operate at

 

the same location as a public school that currently is on the list

 

under section 1280c(1) or 1280g(3), as applicable, of the public

 

schools in this state that the state school reform/redesign office

 

has determined to be among the lowest achieving 5% of all public

 

schools in this state or has been on that list during the

 

immediately preceding 3-year period. Beginning after the

 

accountability system under section 390 has been in effect in the

 

community district for at least 3 full school years, the proposed

urban high school academy would operate at the same location as a

 

public school that has been assigned a grade of "F" under section

 

390 for 3 of the preceding 5 school years.

 

     (B) The proposed urban high school academy would operate at

 

the same location as a public school academy, urban high school

 

academy, school of excellence, or strict discipline academy that

 

has had its contract revoked or terminated by an authorizing body

 

under the applicable part or section.

 

     (ii) The proposed urban high school academy would have

 

substantially the same board of directors, substantially the same

 

leadership, and substantially the same curriculum offerings as the

 

public school that previously operated at that location.

 

     (10) An urban high school academy that is located within a

 

community district is subject to section 390.

 

     Sec. 528. (1) An authorizing body that issues a contract for

 

an urban high school academy under this part shall do all of the

 

following:

 

     (a) Ensure that the contract and the application for the

 

contract comply with the requirements of this part.

 

     (b) Within 10 days after issuing the contract, submit to the

 

department a copy of the contract.

 

     (c) Adopt a resolution establishing the method of selection,

 

length of term, and number of members of the board of directors of

 

each urban high school academy that it authorizes. The resolution

 

shall be written or amended as necessary to include a requirement

 

that each member of the board of directors must be a citizen of the

 

United States.

     (d) Oversee the operations of each urban high school academy

 

operating under a contract issued by the authorizing body. The

 

oversight shall be sufficient to ensure that the urban high school

 

academy is in compliance with the terms of the contract and with

 

applicable law. An authorizing body may enter into an agreement

 

with 1 or more other authorizing bodies to oversee an urban high

 

school academy operating under a contract issued by the authorizing

 

body.

 

     (e) Develop and implement a process for holding an urban high

 

school academy board of directors accountable for meeting

 

applicable academic performance standards set forth in the contract

 

and for implementing corrective action for an urban high school

 

academy that does not meet those standards.

 

     (f) Take necessary measures to ensure that an urban high

 

school academy board of directors operates independently of any

 

educational management company involved in the operations of the

 

urban high school academy.

 

     (g) Oversee and ensure that the pupil admission process used

 

by the urban high school academy is operated in a fair and open

 

manner and is in compliance with the contract and this part.

 

     (h) Ensure that the board of directors of the urban high

 

school academy maintains and releases information as necessary to

 

comply with applicable law.

 

     (2) An authorizing body may enter into an agreement with 1 or

 

more other authorizing bodies to carry out any function of an

 

authorizing body under this act.

 

     (3) The authorizing body for an urban high school academy is

the fiscal agent for the urban high school academy. A state school

 

aid payment for an urban high school academy shall be paid to the

 

authorizing body that is the fiscal agent for that urban high

 

school academy, which shall then forward the payment to the urban

 

high school academy. Within 30 days after a contract is submitted

 

to the department by an authorizing body under subsection (1), the

 

department shall issue a district code to the urban high school

 

academy for which the contract was issued. If the department does

 

not issue a district code within 30 days after a contract is filed,

 

the state treasurer shall assign a temporary district code in order

 

for the urban high school academy to receive funding under the

 

state school aid act of 1979.

 

     (4) A contract issued under this part may be revoked by the

 

authorizing body that issued the contract if the authorizing body

 

determines that 1 or more of the following have occurred:

 

     (a) Failure of the urban high school academy to demonstrate

 

improved pupil academic achievement for all groups of pupils or

 

meet the educational goals set forth in the contract.

 

     (b) Failure of the urban high school academy to comply with

 

all applicable law.

 

     (c) Failure of the urban high school academy to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

     (d) The existence of 1 or more other grounds for revocation as

 

specified in the contract.

 

     (5) Except for an urban high school academy that is an

 

alternative school serving a special student population, if the

state school reform/redesign officer department determines that an

 

urban high school academy site that has been operating for at least

 

4 years is among the lowest achieving 5% of all public schools in

 

this state for the immediately preceding 3 school years, as

 

determined under section 1280c or 1280g, as applicable, not to

 

include any individualized education plan subgroup, the state

 

school reform/redesign officer department shall notify the urban

 

high school academy's authorizing body. Also, except for an urban

 

high school academy that is an alternative school serving a special

 

student population, after the accountability system under section

 

390 has been in effect in the community district for at least 3

 

full school years, if the state school reform/redesign officer

 

determines that an urban high school academy site located in a

 

community district has been assigned a grade of "F" under section

 

390 for the immediately preceding 3 school years, and is not

 

currently undergoing reconstitution under this section, the state

 

school reform/redesign officer shall notify the urban high school

 

academy's authorizing body. Subject to subsection (6), if an

 

authorizing body receives notice from the state school

 

reform/redesign officer department under this subsection, the

 

authorizing body shall notify the urban high school academy and

 

amend the urban high school academy's contract to eliminate the

 

urban high school academy's authority to operate the existing age

 

and grade levels at the site and the urban high school academy

 

shall cease operating the existing age and grade levels at the

 

site, effective at the end of the current school year. Subject to

 

subsection (6), if the urban high school academy operates at only 1

House Bill No. 5526 as amended December 13, 2018

site, and the authorizing body receives notice from the state

 

school reform/redesign officer department under this subsection,

 

the authorizing body shall notify the urban high school academy and

 

revoke the urban high school academy's contract, effective at the

 

end of the current school year.

 

     (6) For an urban high school academy or site that is subject

 

to a notice [to    ] its authorizing body under this subsection (5),

 

the state school reform/redesign officer [department] shall

 

consider other public school options available to pupils in the

 

grade levels offered by the urban high school academy or site who

 

reside in the geographic area served by the urban high school

 

academy or site. If the state school reform/redesign officer

 

[department] determines that closure of the urban high school

 

academy or site would result in an unreasonable hardship to these

 

pupils because there are insufficient other public school options

 

reasonably available for these pupils, the state school

 

reform/redesign officer [department] may rescind the notice. If

 

the state school reform/redesign officer [department] rescinds

 

a notice subjecting an urban high school academy or site to

 

closure, the state school reform/redesign officer [department]

 

shall do so before the end of the school year. If the state school

 

reform/redesign officer [department] rescinds a notice

 

subjecting an urban high school academy or site to closure, the

 

state school reform/redesign officer [department] shall require

 

the urban high school academy or site to implement a school

 

improvement plan that includes measures to increase pupil growth

 

and improve pupil proficiency, with growth and proficiency measured

by performance on state assessments.

 

     (7) Except as otherwise provided in section 522, the decision

 

of an authorizing body to issue, not issue, or reconstitute a

 

contract under this part, or to terminate or revoke a contract

 

under this section, is solely within the discretion of the

 

authorizing body, is final, and is not subject to review by a court

 

or any state agency. An authorizing body that issues, does not

 

issue, or reconstitutes a contract under this part, or that

 

terminates or revokes a contract under this section, is not liable

 

for that action to the urban high school academy, the urban high

 

school academy corporation, a pupil of the urban high school

 

academy, the parent or guardian of a pupil of the urban high school

 

academy, or any other person.

 

     (8) Except as otherwise provided in this section, before an

 

authorizing body revokes a contract, the authorizing body may

 

consider and take corrective measures to avoid revocation. An

 

authorizing body may reconstitute the urban high school academy in

 

a final attempt to improve student educational performance or to

 

avoid interruption of the educational process. An authorizing body

 

shall include a reconstituting provision in the contract that

 

identifies these corrective measures, including, but not limited

 

to, removing 1 or more members of the board of directors,

 

withdrawing approval to contract under section 527, or appointing a

 

new board of directors or a trustee to take over operation of the

 

urban high school academy.

 

     (9) If an authorizing body revokes a contract, the authorizing

 

body shall work with a school district or another public school, or

with a combination of these entities, to ensure a smooth transition

 

for the affected pupils. If the revocation occurs during the school

 

year, the authorizing body, as the fiscal agent for the urban high

 

school academy under this part, shall return any school aid funds

 

held by the authorizing body that are attributable to the affected

 

pupils to the state treasurer for deposit into the state school aid

 

fund. The state treasurer shall distribute funds to the public

 

school in which the pupils enroll after the revocation pursuant to

 

a methodology established by the department and the center for

 

educational performance and information.

 

     (10) Not more than 10 days after an urban high school

 

academy's contract terminates or is revoked, the authorizing body

 

shall notify the superintendent of public instruction in writing of

 

the name of the urban high school academy whose contract has

 

terminated or been revoked and the date of contract termination or

 

revocation.

 

     (11) If an urban high school academy's contract terminates or

 

is revoked, title to all real and personal property, interest in

 

real or personal property, and other assets owned by the urban high

 

school academy shall revert to the state. This property shall be

 

distributed in accordance with the following:

 

     (a) Within 30 days following the termination or revocation,

 

the board of directors of an urban high school academy shall hold a

 

public meeting to adopt a plan of distribution of assets and to

 

approve the dissolution of the urban high school academy

 

corporation, all in accordance with chapter 8 of the nonprofit

 

corporation act, 1982 PA 162, MCL 450.2801 to 450.2864.

     (b) The urban high school academy shall file a certificate of

 

dissolution with the department of licensing and regulatory affairs

 

within 10 business days following board approval.

 

     (c) Simultaneously with the filing of the certificate of

 

dissolution under subdivision (b), the urban high school academy

 

board of directors shall provide a copy of the board of directors'

 

plan of distribution of assets to the state treasurer for approval.

 

Within 30 days, the state treasurer, or his or her designee, shall

 

review and approve the board of directors' plan of distribution of

 

assets. If the proposed plan of distribution of assets is not

 

approved within 30 days, the state treasurer, or his or her

 

designee, shall provide the board of directors with an acceptable

 

plan of distribution of assets.

 

     (d) The state treasurer, or his or her designee, shall monitor

 

the urban high school academy's winding up of the dissolved

 

corporation in accordance with the plan of distribution of assets

 

approved or provided under subdivision (c).

 

     (e) As part of the plan of distribution of assets, the urban

 

high school academy board of directors shall designate the director

 

of the department of technology, management, and budget, or his or

 

her designee, to dispose of all real property of the urban high

 

school academy corporation in accordance with the directives

 

developed for disposition of surplus land and facilities under

 

section 251 of the management and budget act, 1984 PA 431, MCL

 

18.1251.

 

     (f) If the board of directors of an urban high school academy

 

fails to take any necessary action under this section, the state

treasurer, or his or her designee, may suspend the urban high

 

school academy board of directors and appoint a trustee to carry

 

out the board's plan of distribution of assets. Upon appointment,

 

the trustee shall have all the rights, powers, and privileges under

 

law that the urban high school academy board of directors had

 

before being suspended.

 

     (g) Following the sale of the real or personal property or

 

interests in the real or personal property, and after payment of

 

any urban high school academy debt secured by the property or

 

interest in property, whether real or personal, the urban high

 

school academy board of directors, or a trustee appointed under

 

this section, shall forward any remaining money to the state

 

treasurer. Following receipt, the state treasurer, or his or her

 

designee, shall deposit this remaining money in the state school

 

aid fund.

 

     Sec. 552. (1) An authorizing body may issue contracts under

 

this subsection to organize and operate a school of excellence. All

 

of the following apply to the issuance of a contract by an

 

authorizing body under this subsection:

 

     (a) The issuance of the contract must be approved by the

 

superintendent of public instruction. The superintendent of public

 

instruction shall approve issuance of a contract if he or she

 

determines that the proposed school of excellence is modeled after

 

a high-performing school or program.

 

     (b) The first 5 contracts issued by all authorizing bodies

 

under this subsection shall be for schools of excellence that offer

 

1 or more of high school grades 9 to 12, or any combination of

those grades, as specified in the contract.

 

     (c) A school of excellence authorized under this subsection

 

shall not be located in a school district that has a graduation

 

rate of over 75%, on average, for the most recent 3 school years

 

for which the data are available, as determined by the department.

 

     (2) Subject to the limitations in this subsection and

 

subsections (14) and (15), an authorizing body may issue contracts

 

under this subsection for 1 or more schools of excellence that are

 

cyber schools. The combined total number of contracts issued by all

 

statewide authorizing bodies under this subsection for schools of

 

excellence that are cyber schools shall not exceed 15. The board of

 

a school district, an intermediate school board, the board of a

 

community college that is not a statewide authorizing body, or 2 or

 

more public agencies acting jointly as described in subsection

 

(6)(e) may not act as the authorizing body for more than 1 school

 

of excellence that is a cyber school. An authorizing body shall not

 

issue a contract for a school of excellence that is a cyber school

 

unless the school of excellence that is a cyber school meets all of

 

the following requirements:

 

     (a) Is available for enrollment to all pupils in this state.

 

     (b) Offers some configuration of or all of grades K to 12.

 

     (c) The entity applying for the school of excellence that is a

 

cyber school demonstrates experience in delivering a quality

 

education program that improves pupil academic achievement. In

 

determining whether this requirement is met, an authorizing body

 

shall refer to the standards for quality online learning

 

established by the national association of charter school

authorizers or other similar nationally recognized standards for

 

quality online learning.

 

     (d) The enrollment in the school of excellence that is a cyber

 

school is limited to not more than 2,500 pupils in membership for

 

the first school year of operation of the school of excellence that

 

is a cyber school, not more than 5,000 pupils in membership for the

 

second school year of operation of the school of excellence that is

 

a cyber school, and not more than 10,000 pupils in membership for

 

the third and subsequent school years of operation of the school of

 

excellence that is a cyber school. As used in this subdivision,

 

"membership" means that term as defined in section 6 of the state

 

school aid act of 1979, MCL 388.1606.

 

     (e) The school of excellence that is a cyber school offers

 

each pupil's family a computer and subsidizes the cost of internet

 

access.

 

     (3) For a public school academy operating under part 6a that

 

meets the requirements of subsection (4), with the approval of its

 

authorizing body, the board of directors of the public school

 

academy may adopt a resolution choosing to convert the public

 

school academy to a school of excellence under this part. If the

 

board of directors of a public school academy that meets the

 

requirements of subsection (4) is issued a contract as a school of

 

excellence under this subsection, all the following apply:

 

     (a) The public school academy shall cease to operate as a

 

public school academy under part 6a and shall operate as a school

 

of excellence upon the issuance of a contract or at another time as

 

determined by the authorizing body.

     (b) The public school academy shall be considered to be a

 

school of excellence for all purposes upon the issuance of a

 

contract or at another time as determined by the authorizing body,

 

but shall retain its corporate identity.

 

     (c) The conversion of a public school academy under part 6a to

 

a school of excellence operating under this part shall not impair

 

any agreement, mortgage, loan, bond, note or other instrument of

 

indebtedness, or any other agreement entered into by a public

 

school academy while it was operating under part 6a.

 

     (d) The contract issued to the public school academy under

 

part 6a shall automatically terminate upon the issuance of a

 

contract or at another time as determined by the authorizing body.

 

     (4) Subsection (3) applies to a public school academy that is

 

determined by the department to meet all of the following, as

 

applicable:

 

     (a) If the public school academy operates only some or all of

 

grades K to 8, meets at least 1 of the following:

 

     (i) On average over a 3-year period, at least 90% of the

 

pupils enrolled in the public school academy achieved a score of

 

proficient or better on the Michigan education assessment program

 

mathematics and reading tests or successor state assessment

 

program.

 

     (ii) On average over a 3-year period, at least 70% of the

 

pupils enrolled in the public school academy achieved a score of

 

proficient or better on the Michigan education assessment program

 

mathematics and reading tests or successor state assessment program

 

and at least 50% of the pupils enrolled in the public school

academy met the income eligibility criteria for the federal free or

 

reduced-price lunch program, as determined under the Richard B.

 

Russell national school lunch act, 42 USC 1751 to 1769j, and

 

reported to the department.

 

     (b) If the public school academy operates grades 9 to 12, at

 

least 80% of the school's pupils graduate from high school or are

 

determined by the department to be on track to graduate from high

 

school, the school has at least 80% average attendance, and the

 

school has at least an 80% postsecondary enrollment rate.

 

     (5) A school of excellence shall be organized and administered

 

under the direction of a board of directors in accordance with this

 

part and with bylaws adopted by the board of directors. A school of

 

excellence shall be organized under the nonprofit corporation act,

 

1982 PA 162, MCL 450.2101 to 450.3192, except that a school of

 

excellence is not required to comply with sections 170 to 177 of

 

1931 PA 327, MCL 450.170 to 450.177. To the extent disqualified

 

under the state or federal constitution, a school of excellence

 

shall not be organized by a church or other religious organization

 

and shall not have any organizational or contractual affiliation

 

with or constitute a church or other religious organization.

 

     (6) Any of the following may act as an authorizing body to

 

issue a contract to organize and operate 1 or more schools of

 

excellence under this part:

 

     (a) The board of a school district. However, except as

 

otherwise provided in this subdivision, the board of a school

 

district shall not issue a contract for a school of excellence to

 

operate outside the school district's boundaries, and a school of

excellence authorized by the board of a school district shall not

 

operate outside that school district's boundaries. If the board of

 

a school district issues a contract for a school of excellence that

 

is a cyber school, the contract may authorize the school of

 

excellence that is a cyber school to operate outside that school

 

district's boundaries.

 

     (b) An intermediate school board. However, except as otherwise

 

provided in this subdivision, the board of an intermediate school

 

district shall not issue a contract for a school of excellence to

 

operate outside the intermediate school district's boundaries, and

 

a school of excellence authorized by the board of an intermediate

 

school district shall not operate outside that intermediate school

 

district's boundaries. If the board of an intermediate school

 

district issues a contract for a school of excellence that is a

 

cyber school, the contract may authorize the school of excellence

 

that is a cyber school to operate outside that intermediate school

 

district's boundaries.

 

     (c) The board of a community college. Except as otherwise

 

provided in this subdivision, the board of a community college

 

shall not issue a contract for a school of excellence to operate

 

outside the boundaries of the community college district, and a

 

school of excellence authorized by the board of a community college

 

shall not operate outside the boundaries of the community college

 

district. If the board of a community college issues a contract for

 

a school of excellence that is a cyber school, the contract may

 

authorize the school of excellence that is a cyber school to

 

operate outside the boundaries of the community college district.

The board of a community college also may issue a contract for not

 

more than 1 school of excellence to operate on the grounds of an

 

active or closed federal military installation located outside the

 

boundaries of the community college district, or may operate a

 

school of excellence itself on the grounds of such a federal

 

military installation, if the federal military installation is not

 

located within the boundaries of any community college district and

 

the community college has previously offered courses on the grounds

 

of the federal military installation for at least 10 years.

 

     (d) The governing board of a state public university.

 

     (e) Two or more of the public agencies described in

 

subdivisions (a) to (d) exercising power, privilege, or authority

 

jointly pursuant to an interlocal agreement under the urban

 

cooperation act of 1967, 1967 (Ex Sess) PA 7, MCL 124.501 to

 

124.512.

 

     (7) To obtain a contract to organize and operate 1 or more

 

schools of excellence, 1 or more persons or an entity may apply to

 

an authorizing body described in this section. The application

 

shall include at least all of the following:

 

     (a) Identification of the applicant for the contract.

 

     (b) Subject to the resolution adopted by the authorizing body

 

under section 553(4), a list of the proposed members of the board

 

of directors of the school of excellence and a description of the

 

qualifications and method for appointment or election of members of

 

the board of directors.

 

     (c) The proposed articles of incorporation, which shall

 

include at least all of the following:

     (i) The name of the proposed school of excellence.

 

     (ii) The purposes for the school of excellence corporation.

 

This language shall provide that the school of excellence is

 

incorporated pursuant to this part and that the school of

 

excellence is a governmental entity.

 

     (iii) The name of the authorizing body.

 

     (iv) The proposed time when the articles of incorporation will

 

be effective.

 

     (v) Other matters considered expedient to be in the articles

 

of incorporation.

 

     (d) A copy of the proposed bylaws of the school of excellence.

 

     (e) Documentation meeting the application requirements of the

 

authorizing body, including at least all of the following:

 

     (i) The governance structure of the school of excellence.

 

     (ii) A copy of the educational goals of the school of

 

excellence and the curricula to be offered and methods of pupil

 

assessment to be used by the school of excellence. The educational

 

goals shall include demonstrated improved pupil academic

 

achievement for all groups of pupils. To the extent applicable, the

 

progress of the pupils in the school of excellence shall be

 

assessed using both the mathematics and reading portions of the

 

Michigan student test of educational progress (M-STEP) or the

 

Michigan merit examination under section 1279g, as applicable.

 

     (iii) The admission policy and criteria to be maintained by

 

the school of excellence. The admission policy and criteria shall

 

comply with section 556. This part of the application also shall

 

include a description of how the applicant will provide to the

general public adequate notice that a school of excellence is being

 

created and adequate information on the admission policy, criteria,

 

and process.

 

     (iv) Except for a school of excellence that is a cyber school,

 

the school calendar and school day schedule.

 

     (v) The age or grade range of pupils to be enrolled.

 

     (f) Descriptions of staff responsibilities and of the school

 

of excellence governance structure.

 

     (g) For an application to the board of a school district, an

 

intermediate school board, or board of a community college,

 

identification of the school district and intermediate school

 

district in which the school of excellence will be located.

 

     (h) An agreement that the school of excellence will comply

 

with the provisions of this part and, subject to the provisions of

 

this part, with all other state law applicable to public bodies and

 

with federal law applicable to public bodies or school districts.

 

     (i) A description of and address for the proposed physical

 

plant in which the school of excellence will be located. An

 

applicant may request the authorizing body to issue a contract

 

allowing the board of directors of the school of excellence to

 

operate the same configuration of age or grade levels at more than

 

1 site.

 

     (8) An authorizing body shall oversee, or shall contract with

 

an intermediate school district, community college, or state public

 

university to oversee, each school of excellence operating under a

 

contract issued by the authorizing body. The authorizing body is

 

responsible for overseeing compliance by the board of directors

with the contract and all applicable law. This subsection does not

 

relieve any other government entity of its enforcement or

 

supervisory responsibility.

 

     (9) If the superintendent of public instruction finds that an

 

authorizing body is not engaging in appropriate continuing

 

oversight of 1 or more schools of excellence operating under a

 

contract issued by the authorizing body, the superintendent of

 

public instruction may suspend the power of the authorizing body to

 

issue new contracts to organize and operate schools of excellence.

 

A contract issued by the authorizing body during the suspension is

 

void. A contract issued by the authorizing body before the

 

suspension is not affected by the suspension.

 

     (10) An authorizing body shall not charge a fee, or require

 

reimbursement of expenses, for considering an application for a

 

contract, for issuing a contract, or for providing oversight of a

 

contract for a school of excellence in an amount that exceeds a

 

combined total of 3% of the total state school aid received by the

 

school of excellence in the school year in which the fees or

 

expenses are charged. The authorizing body may provide other

 

services for a school of excellence and charge a fee for those

 

services, but shall not require such an arrangement as a condition

 

to issuing the contract authorizing the school of excellence.

 

     (11) A school of excellence shall be presumed to be legally

 

organized if it has exercised the franchises and privileges of a

 

public school academy for at least 2 years.

 

     (12) A member of the board of directors of a school of

 

excellence is a public officer and shall, before entering upon the

duties of the office, take the constitutional oath of office for

 

public officers under section 1 of article XI of the state

 

constitution of 1963.

 

     (13) A school of excellence that is a cyber school may make

 

available to other public schools for purchase any of the course

 

offerings that the cyber school offers to its own pupils.

 

     (14) If the department determines that the combined total

 

statewide final audited membership for all pupils in membership in

 

schools of excellence that are cyber schools for the 2012-2013

 

state fiscal year exceeds a number equal to 1% of the combined

 

total statewide final audited membership for all pupils in

 

membership in public schools for the 2011-2012 state fiscal year,

 

then all of the following apply:

 

     (a) An authorizing body may not issue a new contract for a new

 

school of excellence that is a cyber school to begin operations in

 

the 2013-2014 school year.

 

     (b) A school of excellence that is a cyber school may not

 

enroll any new pupils in the school of excellence that is a cyber

 

school in the 2013-2014 school year.

 

     (15) Beginning July 1, 2013, if the department determines that

 

the combined total statewide final audited membership for all

 

pupils in membership in schools of excellence that are cyber

 

schools for a state fiscal year exceeds a number equal to 2% of the

 

combined total statewide final audited membership for all pupils in

 

membership in public schools for the 2011-2012 state fiscal year,

 

then all of the following apply:

 

     (a) Subject to subdivision (c), an authorizing body may not

issue a new contract for a new school of excellence that is a cyber

 

school to begin operations in a school year that begins after that

 

determination is made.

 

     (b) Subject to subdivision (c), a school of excellence that is

 

a cyber school may not enroll any new pupils in the school of

 

excellence that is a cyber school in a school year that begins

 

after that determination is made.

 

     (c) If the department determines that the combined total

 

statewide final audited membership for all pupils in membership in

 

schools of excellence that are cyber schools for a state fiscal

 

year does not exceed a number equal to 2% of the combined total

 

statewide final audited membership for all pupils in membership in

 

public schools for the 2011-2012 state fiscal year, then

 

subdivisions (a) and (b) do not apply for a school year that begins

 

after that determination is made unless the department makes a new

 

determination that the membership limits under this subsection have

 

been exceeded.

 

     (16) For the purposes of subsections (14) and (15), not later

 

than July 1 of each year, the department shall determine the

 

percentage of the combined total statewide final audited membership

 

for all pupils in membership in public schools that are pupils in

 

membership in schools of excellence that are cyber schools for the

 

state fiscal year that includes that July 1.

 

     (17) As used in this section:

 

     (a) "Membership" means that term as defined in section 6 of

 

the state school aid act of 1979, MCL 388.1606.

 

     (b) "Statewide authorizing body" means the governing board of

a state public university or the board of a federal tribally

 

controlled community college that is recognized under the tribally

 

controlled colleges and universities assistance act of 1978, 25 USC

 

1801 to 1864, and is determined by the department to meet the

 

requirements for accreditation by a recognized regional accrediting

 

body.

 

     (18) Not later than October 1, 2012, if a district, an

 

intermediate school district, a public school academy, or the

 

education achievement system offers online learning, the board or

 

board of directors of the district, intermediate school district,

 

or public school academy, or the education achievement system,

 

shall submit to the department a report that details the per-pupil

 

costs of operating the online learning. The report shall include,

 

on a per-pupil basis, at least all of the following costs:

 

     (a) Textbooks, instructional materials, and supplies,

 

including electronic instructional material.

 

     (b) Computer and other electronic equipment, including

 

internet and telephone access.

 

     (c) Salaries and benefits for the online learning employees.

 

     (d) Purchased courses and curricula.

 

     (e) Fees associated with oversight and regulation.

 

     (f) Travel costs associated with school activities and

 

testing.

 

     (g) Facilities costs.

 

     (h) Costs associated with special education.

 

     (19) Not later than December 31, 2012, the department shall

 

issue a report to the legislature including the following:

     (a) A review of the data submitted under subsection (14).

 

     (b) A comparison with costs of substantially similar programs

 

in other states and relevant national research on the costs of

 

online learning.

 

     (c) Any conclusions concerning factors or characteristics of

 

online learning programs that make a difference in the costs of

 

operating the programs.

 

     (20) The board of directors of a school of excellence that is

 

a cyber school, or the board of a school district, intermediate

 

school district, or public school academy that operates an online

 

or other distance learning program, shall submit a monthly report

 

to the department, in the form and manner prescribed by the

 

department, that reports the number of pupils enrolled in the

 

school of excellence that is a cyber school, or in the online or

 

other distance learning program, during the immediately preceding

 

month.

 

     (21) The board of directors of a school of excellence that is

 

a cyber school shall ensure that, when a pupil enrolls in the

 

school of excellence that is a cyber school, the pupil and his or

 

her parent or legal guardian are provided with a parent-student

 

orientation. If the pupil is at least age 18 or is an emancipated

 

minor, the orientation may be provided to just the pupil.

 

     (22) Both of the following apply to the issuance of a contract

 

for a school of excellence to be located within a community

 

district:

 

     (a) An authorizing body shall not issue a contract to organize

 

and operate a new school of excellence to be located in a community

district unless, before issuing the contract, the governing board

 

of the authorizing body has certified to the state school

 

reform/redesign officer department that the authorizing body has

 

been accredited as an authorizing body by a nationally recognized

 

accreditation body. For an authorizing body described in subsection

 

(6)(e), the authorizing body shall not issue a contract to organize

 

and operate a new school of excellence to be located in a community

 

district unless, before issuing the contract, the governing board

 

of each of the public agencies that is party to the interlocal

 

agreement has certified to the state school reform/redesign officer

 

department that the public agency has been accredited as an

 

authorizing body by a nationally recognized accreditation body.

 

     (b) An authorizing body shall not issue a contract for a new

 

school of excellence to be located in a community district if both

 

of the following circumstances exist:

 

     (i) Either of the following:

 

     (A) Until the accountability system under section 390 has been

 

in effect in the community district for at least 3 full school

 

years, the The proposed school of excellence would operate at the

 

same location as a public school that currently is on the list

 

under section 1280c(1) or 1280g(3), as applicable, of the public

 

schools in this state that the state school reform/redesign office

 

has determined to be among the lowest achieving 5% of all public

 

schools in this state or has been on that list during the

 

immediately preceding 3-year period. Beginning after the

 

accountability system under section 390 has been in effect in the

 

community district for at least 3 full school years, the proposed

school of excellence would operate at the same location as a public

 

school that has been assigned a grade of "F" under section 390 for

 

3 of the preceding 5 school years.

 

     (B) The proposed school of excellence would operate at the

 

same location as a public school academy, urban high school

 

academy, school of excellence, or strict discipline academy that

 

has had its contract revoked or terminated by an authorizing body

 

under the applicable part or section.

 

     (ii) The proposed school of excellence would have

 

substantially the same board of directors, substantially the same

 

leadership, and substantially the same curriculum offerings as the

 

public school that previously operated at that location.

 

     (23) A school of excellence that is located within a community

 

district is subject to section 390.

 

     Sec. 561. (1) If an authorizing body issues a contract for a

 

school of excellence under this part, the authorizing body shall do

 

all of the following:

 

     (a) Ensure that the contract and the application for the

 

contract comply with the requirements of this part.

 

     (b) Within 10 days after issuing the contract, submit to the

 

department a copy of the contract.

 

     (c) Establish the method of selection, length of term, and

 

number of members of the board of directors of each school of

 

excellence that it authorizes. The authorizing body shall ensure

 

that the board of directors includes representation from the local

 

community.

 

     (d) Oversee the operations of each school of excellence

operating under a contract issued by the authorizing body. The

 

oversight shall be sufficient to ensure that the school of

 

excellence is in compliance with the terms of the contract and with

 

applicable law. This subdivision does not relieve any other

 

governmental entity of its enforcement or supervisory

 

responsibility.

 

     (e) Develop and implement a process for holding a school of

 

excellence board of directors accountable for meeting applicable

 

academic performance standards set forth in the contract and for

 

implementing corrective action for a school of excellence that does

 

not meet those standards.

 

     (f) Take necessary measures to ensure that a school of

 

excellence board of directors operates independently of any

 

educational management organization involved in the operations of

 

the school of excellence.

 

     (g) Oversee and ensure that the pupil admission process used

 

by the school of excellence is operated in a fair and open manner

 

and is in compliance with the contract and this part.

 

     (h) Ensure that the board of directors of the school of

 

excellence maintains and releases information as necessary to

 

comply with applicable law.

 

     (2) The authorizing body may enter into an agreement with 1 or

 

more authorizing bodies, as defined under part 6a, to carry out any

 

function of the authorizing body under subsection (1)(a) to (h).

 

     (3) The authorizing body for a school of excellence is the

 

fiscal agent for the school of excellence. A state school aid

 

payment for a school of excellence shall be paid to the authorizing

body as the fiscal agent for that school of excellence, and the

 

authorizing body shall then forward the payment to the school of

 

excellence. Within 30 days after a contract is submitted to the

 

department by the authorizing body under subsection (1), the

 

department shall issue a district code to the school of excellence

 

for which the contract was issued. If the department does not issue

 

a district code within 30 days after a contract is filed, the state

 

treasurer shall assign a temporary district code in order for the

 

school of excellence to receive funding under the state school aid

 

act of 1979.

 

     (4) A contract issued under this part may be revoked by the

 

authorizing body if the authorizing body determines that 1 or more

 

of the following have occurred:

 

     (a) Failure of the school of excellence to demonstrate

 

improved pupil academic achievement for all groups of pupils or

 

meet the educational goals set forth in the contract.

 

     (b) Failure of the school of excellence to comply with all

 

applicable law.

 

     (c) Failure of the school of excellence to meet generally

 

accepted public sector accounting principles and demonstrate sound

 

fiscal stewardship.

 

     (d) The existence of 1 or more other grounds for revocation as

 

specified in the contract.

 

     (5) Except for a school of excellence that is an alternative

 

school serving a special student population, if the state school

 

reform/redesign officer department determines that a school of

 

excellence site that has been operating for at least 4 years is

House Bill No. 5526 as amended December 13, 2018

among the lowest achieving 5% of all public schools in this state

 

for the immediately preceding 3 school years, as determined under

 

section 1280c or 1280g, as applicable, not to include any

 

individualized education plan subgroup, the state school

 

reform/redesign officer department shall notify the school of

 

excellence's authorizing body. Also, except for a school of

 

excellence that is an alternative school serving a special student

 

population, after the accountability system under section 390 has

 

been in effect in the community district for at least 3 full school

 

years, if the state school reform/redesign officer determines that

 

a school of excellence site located in a community district has

 

been assigned a grade of "F" under section 390 for the immediately

 

preceding 3 school years, and is not currently undergoing

 

reconstitution under this section, the state school reform/redesign

 

officer shall notify the school of excellence's authorizing body.

 

Subject to subsection (6), if an authorizing body receives notice

 

from the state school reform/redesign officer department under this

 

subsection, the authorizing body shall notify the school [of] excellence

 

and amend the school of excellence's contract to eliminate the

 

school of excellence's authority to operate the existing age and

 

grade levels at the site and the school of excellence shall cease

 

operating the existing age and grade levels at the site, effective

 

at the end of the current school year. Subject to subsection (6),

 

if the school of excellence operates at only 1 site or is a cyber

 

school, and the authorizing body receives notice from the state

 

school reform/redesign officer department under this subsection,

 

the authorizing body shall notify the school of excellence and

House Bill No. 5526 as amended December 13, 2018

revoke the school of excellence's contract, effective at the end of

 

the current school year.

 

     (6) For a school of excellence or site that is subject to a

 

notice [to    ] its authorizing body under this subsection (5), the

 

state school reform/redesign officer [department] shall

 

consider other public school options available to pupils in the

 

grade levels offered by the school of excellence or site who reside

 

in the geographic area served by the school of excellence or site.

 

If the state school reform/redesign officer [department]

 

determines that closure of the school of excellence or site would

 

result in an unreasonable hardship to these pupils because there

 

are insufficient other public school options reasonably available

 

for these pupils, the state school reform/redesign officer

 

[department] may rescind the notice. If the state school

 

reform/redesign officer [department] rescinds a notice

 

subjecting a school of excellence or site to closure, the state

 

school reform/redesign officer [department] shall do so before

 

the end of the school year. If the state school reform/redesign

 

officer [department] rescinds a notice subjecting a school of

 

excellence or site to closure, the state school reform/redesign

 

officer [department] shall require the school of excellence or

 

site to implement a school improvement plan that includes measures

 

to increase pupil growth and improve pupil proficiency, with growth

 

and proficiency measured by performance on state assessments.

 

     (7) Except for a contract issued by a school district pursuant

 

to a vote by the school electors on a ballot question under section

 

553(2), and except as otherwise provided in section 552, the

decision of the authorizing body to issue, not issue, or

 

reconstitute a contract under this part, or to terminate or revoke

 

a contract under this section, is solely within the discretion of

 

the authorizing body, is final, and is not subject to review by a

 

court or any other state agency. If the authorizing body issues,

 

does not issue, or reconstitutes a contract under this part, or

 

terminates or revokes a contract under this section, the

 

authorizing body is not liable for that action to the school of

 

excellence, the school of excellence corporation, a pupil of the

 

school of excellence, the parent or guardian of a pupil of the

 

school of excellence, or any other person.

 

     (8) Except as otherwise provided in this section, before the

 

authorizing body revokes a contract, the authorizing body may

 

consider and take corrective measures to avoid revocation. The

 

authorizing body may reconstitute the school of excellence in a

 

final attempt to improve student educational performance or to

 

avoid interruption of the educational process. The authorizing body

 

shall include a reconstituting provision in the contract that

 

identifies these corrective measures, including, but not limited

 

to, canceling a contract with an educational management

 

organization, if any, withdrawing approval to contract under

 

section 560, or appointing a new board of directors or a trustee to

 

take over operation of the school of excellence.

 

     (9) If the authorizing body revokes a contract, the

 

authorizing body shall work with a school district or another

 

public school, or with a combination of these entities, to ensure a

 

smooth transition for the affected pupils. If the revocation occurs

during the school year, the authorizing body, as the fiscal agent

 

for the school of excellence under this part, shall return any

 

school aid funds held by the authorizing body that are attributable

 

to the affected pupils to the state treasurer for deposit into the

 

state school aid fund. The state treasurer shall distribute funds

 

to the public school in which the pupils enroll after the

 

revocation pursuant to a methodology established by the department

 

and the center for educational performance and information.

 

     (10) Not more than 10 days after a school of excellence's

 

contract terminates or is revoked, the authorizing body shall

 

notify the superintendent of public instruction in writing of the

 

name of the school of excellence whose contract has terminated or

 

been revoked and the date of contract termination or revocation.

 

     (11) If a school of excellence's contract terminates or is

 

revoked, title to all real and personal property, interest in real

 

or personal property, and other assets owned by the school of

 

excellence shall revert to the state. This property shall be

 

distributed in accordance with the following:

 

     (a) Within 30 days following the termination or revocation,

 

the board of directors of a school of excellence shall hold a

 

public meeting to adopt a plan of distribution of assets and to

 

approve the dissolution of the school of excellence corporation,

 

all in accordance with chapter 8 of the nonprofit corporation act,

 

1982 PA 162, MCL 450.2801 to 450.2864.

 

     (b) The school of excellence shall file a certificate of

 

dissolution with the department of licensing and regulatory affairs

 

within 10 business days following board approval.

     (c) Simultaneously with the filing of the certificate of

 

dissolution under subdivision (b), the school of excellence board

 

of directors shall provide a copy of the board of directors' plan

 

of distribution of assets to the state treasurer for approval.

 

Within 30 days, the state treasurer, or his or her designee, shall

 

review and approve the board of directors' plan of distribution of

 

assets. If the proposed plan of distribution of assets is not

 

approved within 30 days, the state treasurer, or his or her

 

designee, shall provide the board of directors with an acceptable

 

plan of distribution of assets.

 

     (d) The state treasurer, or his or her designee, shall monitor

 

the school of excellence's winding up of the dissolved corporation

 

in accordance with the plan of distribution of assets approved or

 

provided under subdivision (c).

 

     (e) As part of the plan of distribution of assets, the school

 

of excellence board of directors shall designate the director of

 

the department of technology, management, and budget, or his or her

 

designee, to dispose of all real property of the school of

 

excellence corporation in accordance with the directives developed

 

for disposition of surplus land and facilities under section 251 of

 

the management and budget act, 1984 PA 431, MCL 18.1251.

 

     (f) If the board of directors of a school of excellence fails

 

to take any necessary action under this section, the state

 

treasurer, or his or her designee, may suspend the school of

 

excellence board of directors and appoint a trustee to carry out

 

the board's plan of distribution of assets. Upon appointment, the

 

trustee shall have all the rights, powers, and privileges under law

that the school of excellence board of directors had before being

 

suspended.

 

     (g) Following the sale of the real or personal property or

 

interests in the real or personal property, and after payment of

 

any school of excellence debt secured by the property or interest

 

in property, whether real or personal, the school of excellence

 

board of directors, or a trustee appointed under this section,

 

shall forward any remaining money to the state treasurer. Following

 

receipt, the state treasurer, or his or her designee, shall deposit

 

this remaining money in the state school aid fund.

 

     Sec. 1250. (1) Except as otherwise provided in this section, a

 

school district, public school academy, or intermediate school

 

district shall implement and maintain a method of compensation for

 

its teachers and school administrators that includes job

 

performance and job accomplishments as a significant factor in

 

determining compensation and additional compensation. The

 

assessment of job performance shall incorporate a rigorous,

 

transparent, and fair evaluation system that evaluates a teacher's

 

or school administrator's performance at least in part based upon

 

data on student growth as measured by assessments and other

 

objective criteria.

 

     (2) If a collective bargaining agreement is in effect for

 

teachers or school administrators of a school district, public

 

school academy, or intermediate school district as of January 4,

 

2010, and if that collective bargaining agreement prevents

 

compliance with subsection (1), then subsection (1) does not apply

 

to that school district, public school academy, or intermediate

House Bill No. 5526 as amended December 13, 2018

school district until after the expiration of that collective

 

bargaining agreement.

 

     (3) For teachers and school administrators who are hired by a

 

community district after the accountability system under section

 

390 has been implemented, [September 1, 2019,] the community district

 

shall implement and maintain a method of compensation that includes

 

job performance and job accomplishments as the primary factor in

 

determining compensation and additional compensation. A teacher's

 

or school administrator's job performance shall be evaluated based

 

on the teacher's annual evaluation under section 1249 or the school

 

administrator's annual evaluation under section 1249b, as

 

applicable.

 

     (4) For teachers and school administrators who are hired by a

 

community district after the accountability system under section

 

390 has been implemented, September 1, 2019, the community district

 

shall not use length of service or achievement of an advanced

 

degree as a factor in compensation levels or adjustments in

 

compensation except as follows:

 

     (a) For a teacher with a secondary level teaching certificate

 

who has a subject area endorsement and who teaches in that subject

 

area, an advanced degree achieved in that subject area may be

 

considered as a factor in the teacher's base compensation.

 

     (b) For a teacher with an elementary level teaching

 

certificate who teaches in an elementary grade, an advanced degree

 

in elementary education may be considered as a factor in the

 

teacher's base compensation.

 

     Sec. 1280g. (1) Not later than [August 1, 2019,] the

House Bill No. 5526 as amended December 13, 2018

department shall develop a statewide system of accountability

 

measurements to improve the national educational ranking of this

 

state. All of the following apply to the statewide system of

 

accountability measurements:

 

     (a) Not later than September 1, 2019, and not later than

 

September 1 of each subsequent year, the department shall assign a

 

letter grade of A, B, C, D, or F for each of the following

 

indicators for each public school:

 

     (i) Pupil proficiency in mathematics and English language

 

arts, as measured by the percentage of all pupils who achieve

 

proficiency on the applicable state assessment, as determined by

 

the department.

 

     (ii) [Pupils                           ] who achieve adequate growth

 

in mathematics and English language arts on the applicable state

 

assessment. The measure of adequate growth under this subdivision

 

may incorporate reporting of pupil growth measures, as reported by

 

the model value-added growth and projection analytics system

 

implemented by the department, and shall be based on [any]          

 

of the following, as determined by the department:

 

     (A) Pupil growth measured from fall to spring of the same

 

school year or from the spring of one school year to the spring of

 

the next school year, as appropriate based on the timing of

 

applicable state assessments.

 

     (B) Pupils who scored proficient on the immediately preceding

 

applicable state assessment and who at least maintained a score of

 

proficient on the most recent applicable state assessment.

 

     (C) Pupils who scored less than proficient on the immediately

House Bill No. 5526 as amended December 13, 2018

preceding applicable state assessment and who demonstrate growth

 

sufficient to reach proficiency in 3 school years.

 

     (iii) [Pupils                ] who are English language

 

learners and who achieve adequate growth toward proficiency in the

 

English language, as determined by the department and as required

 

under the every student succeeds act, Public Law 114-95.

 

     (iv) The graduation rate of pupils enrolled in high school, as

 

applicable and as defined by and reported to CEPI.

 

     [(v) The academic performance of the public school's pupils on the

applicable state assessment compared to pupil performance on the

applicable state assessment for all public schools serving a similar

pupil population. The department shall determine similar pupil population

using demographic factors that the commission considers to have a strong

correlation to academic achievement.                                                             

 

                       

 

                                                       

 

                                                         

 

                            ]

 

     (b) Not later than September 1, 2019, and not later than

 

September 1 of each subsequent year, the department shall assign a

 

ranking of significantly above average, above average, average,

 

below average, or significantly below average to each public school

 

for each of the following indicators:

 

     [(i) The rate of pupils who are chronically absent as defined by

 and reported to CEPI.

     (ii) The participation rate for each applicable state assessment,

based on pupils who are assigned to take each applicable state

assessment. For purposes of this subparagraph, the department shall not

consider a pupil who meets both of the following:

     (A) Is eligible for special education programs and services

according to statute or rule or is a child with disabilities, as defined under the individuals with disabilities education act, Public Law 108-446.

     (B) Is not required to participate in a state assessment.                                                              

                                                                

 

                                                                

 

                                                                 

House Bill No. 5526 as amended December 13, 2018

 

                                                              

 

                                                                

 

     (iii)] Pupil subgroup performance compared to pupils in the same

 

subgroup statewide, as required under the every student succeeds

 

act, Public Law 114-95.